An Agreement of Purchase and Sale contains a condition for the benefit of the seller, such as selling their existing home. If the seller decides they no longer want to sell and does not fulfill or waive this condition by the due date, what is the immediate consequence for the agreement?

Question: An Agreement of Purchase and Sale contains a condition for the benefit of the seller, such as selling their existing home. If the seller decides they no longer want to sell and does not fulfill or waive this condition by the due date, what is the immediate consequence for the agreement?

Answer options:

• The buyer can demand the seller proceed with the sale. ✅ The agreement becomes void and the buyer's deposit is returned.
• The seller must pay a penalty to the buyer for backing out.
• The condition is automatically extended until fulfilled.

Correct answer: The agreement becomes void and the buyer's deposit is returned.

Explanation: Similar to a buyer's condition, if a condition for the benefit of the seller is not fulfilled or waived by the specified date, the agreement becomes null and void, and any deposit held would be returned to the buyer, releasing both parties from their obligations under the contract.